(MENAFN- FxPro) Exchange rates and money markets are inextricably linked; after all you are just exchanging one form of money for another and the price of money (as an asset or liability) is tied up in the interest rate. If it was that simple, then forecasting exchange rates would just an exercise in future monetary policy changes. But it's not that simple and so far this year there have been many examples of why this is not the case, of which sterling provides the most pertinent.
There has been plenty of talk about the referendum on EU membership (dubbed 'Brexit') and I'm not here to enter that debate. I want to explore the implications on the currency of the vote which could well be seen this year.
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